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Amid a record-high youth unemployment crisis and a prolonged job market freeze, local governments in Korea are intensifying efforts with initiatives to support young jobseekers.

These initiatives aim to bridge the gap between local businesses and unemployed youth by facilitating job-matching opportunities. Additionally, they provide financial assistance, including subsidies for job interviews and examination fees, to alleviate the financial burden on jobseekers.

The employment crisis and job market freeze are worsening as businesses and self-employed workers struggle with economic challenges they describe as even more severe than those experienced during the 1997-98 Asian financial crisis and the COVID-19 pandemic.

According to Statistics Korea, the employment rate for young people aged 15 to 29 was 44.8 percent in January, with the number of employed youth dropping by 218,000 — the sharpest decline in four years.

The downturn appears to be driven by companies prioritizing experienced hires amid growing economic uncertainties.

Compounding the crisis, the number of young people who took a break from job seeking for no specific reason increased for the ninth consecutive month, reaching 434,000 in January.

In addition, the job market is showing increasing instability, as the proportion of ultra-short-term workers has reached an all-time high.

Approximately 6 percent of Korea's total workforce of 28.6 million are employed in ultra short-term jobs, marking the highest percentage on record. This trend raises concerns about job security and the growing reliance on precarious employment.

Furthermore, even young graduates with advanced degrees are struggling to find stable work. Three out of 10 people who earned doctorates last year remain unemployed, with the unemployment rate rising to nearly 50 percent among those under 30.

This marks the highest unemployment rate for doctorate holders since the survey began in 2014, pointing to a lack of high-quality, well-paying jobs for highly skilled workers.

A store attendant arranges rental suits in Suwon, Gyeonggi Province, Feb. 3. Yonhap

With youth unemployment remaining a critical issue, local governments across Korea are responding with a range of supports to ensure young people can access employment opportunities, while the central government has yet to roll out comprehensive measures.

Busan, for example, allocated 75.2 billion won ($5.15 million) to enhance career support for young people. The city's employment and labor office, under the Ministry of Employment and Labor, unveiled its plans on Sunday to expand its infrastructure for career exploration and job assistance.

As part of this initiative, jobseekers will have access to resources such as career guidance, job adaptability workshops and professional growth programs.

One of the key components of Busan's initiative is the youth job growth cafe, a space designed to help jobseekers build social connections and boost confidence through a variety of activities. It offers 20-hour programs covering practical skills like resume writing, interview preparation and stress management, ensuring that young people remain engaged in their job search and maintain a positive outlook.

Gwangju Metropolitan City has been running a program connecting young jobseekers with local employers that match their skills since 2017. Recently, the city has taken a more proactive approach, expanding the number of participating companies to 300 in an effort to better match jobseekers with available positions.

The program offers young people the chance to gain practical work experience through various formats, including part-time positions at local public enterprises, private companies and social enterprises.

In response to the prolonged job search period, Gwangju has also increased its job-seeking allowance for youth. This year, the allowance has been raised from 2.5 million won to 3 million won for those meeting specific income criteria.

South Chungcheong Province is also prioritizing tackling youth unemployment, with Cheonan, a city within the province, planning to allocate 2 billion won toward job support programs for young people this year.

The initiative will provide personalized counseling, confidence-building activities and specialized employment consulting services, including customized resume writing and interview preparation.

Jobseekers review job listings at the Seoul Western Employment Welfare Plus Center in Mapo District, Seoul, Feb. 20. Yonhap

More regions are also offering practical support for jobseekers, including free suit rentals for interviews and assistance with interview-related expenses.

Cities like Gwangju, Busan and Ulsan as well as Gyeonggi Province are providing free rentals for suits and shoes, while some regions even cover the cost of certification exams and language tests, offering significant financial relief to young jobseekers.

Beyond financial aid and opportunities with local companies, support systems are diversifying, with initiatives aimed at helping young people secure jobs overseas or start their own businesses.

Busan, for instance, is expanding global job opportunities by partnering with the labor ministry to assist young people in finding employment abroad. During a global job fair held last November, more than 40 companies from 13 countries across Asia, North America, Oceania and Europe interviewed and hired young candidates.